tag:blogger.com,1999:blog-5995748411524319485.post7379418023541626240..comments2023-11-03T04:52:00.422-04:00Comments on False Hustle: Greenspan and Great Menblackinkhttp://www.blogger.com/profile/00537923754597016040noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5995748411524319485.post-60418543185998077992009-01-04T14:37:00.000-05:002009-01-04T14:37:00.000-05:00Either I've been spammed or I'm stupid.I'm willing...Either I've been spammed or I'm stupid.<BR/><BR/>I'm willing to seriously consider both possibilities.blackinkhttps://www.blogger.com/profile/00537923754597016040noreply@blogger.comtag:blogger.com,1999:blog-5995748411524319485.post-37008172083053781632009-01-04T14:23:00.000-05:002009-01-04T14:23:00.000-05:00Sorry, Chairman Ben S. Bernanke, But Quantitative ...<B>Sorry, Chairman Ben S. Bernanke, But Quantitative Easing Won't Work.</B><BR/><BR/>In a Liquidity Trap although Saving (S) is abnormally high investment (I) is next to 0. <BR/><BR/>Hence, the Keynesian paradigm I = S is not verified.<BR/><BR/>The purpose of Quantitative Easing being to lower the yield on long-term savings and increase liquidity it doesn't create $1 of investment. <BR/><BR/>In a Liquidity Trap the last thing the Market needs is liquidity.<BR/><BR/>Quantitative Easing does diminish the yield on long-term US Treasury debt but lowers marginally, if at all, the asked yield on long-term savings.<BR/><BR/>This and other issues are explored in my tract:<BR/><BR/><B>A Specific Application of Employment, Interest and Money<BR/>Plea for a New World Economic Order</B><BR/><BR/><BR/>Abstract:<BR/><BR/><I>This tract makes a critical analysis of credit based, free market economy, Capitalism, and proves that its dysfunctions are the result of the existence of credit. <BR/><BR/>It shows that income / wealth disparity, cause and consequence of credit and of the level of long-term interest-rates, is the first order hidden variable, possibly the only one, of economic development. <BR/><BR/>It solves most of the puzzles of macro economy: among which Unemployment, Business Cycles, Under Development, Trade Deficits, International Division of Labour, Stagflation, Greenspan Conundrum, Deflation and Keynes' Liquidity Trap... <BR/><BR/>It shows that no fiscal or monetary policy, including the barbaric Quantitative Easing will get us out of depression.</I><BR/><BR/><B>A Credit Free, Free Market Economy will correct all of those dysfunctions.</B><BR/><BR/><BR/>The alternative would be, on the long run, to wait for the physical destruction (through war or rust) of most of our productive assets. It will be at a cost none of us can afford to pay.<BR/><BR/><B><A HREF="http://www.17-76.net/interest.html" REL="nofollow">A Specific Application of Employment, Interest and Money</A></B><BR/>http://www.17-76.net/interest.html<BR/><BR/>Press release of my open letter to Chairman Ben S. Bernanke:<BR/><BR/><B><A HREF="http://www.prlog.org/10162465-sorry-chairman-ben-bernanke-but-quantitative-easing-wont-work.html" REL="nofollow">Sorry, Chairman Ben S. Bernanke, But Quantitative Easing Won't Work.</A></B><BR/>http://www.prlog.org/10162465.html<BR/><BR/>Yours Sincerely,<BR/><BR/>Shalom P. Hamou<BR/>Chief Economist & Master ConductorAnonymousnoreply@blogger.com